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Chapter 6: Climate change mitigation and energy LONDON ENVIRONMENT STRATEGY 185

INTRODUCTION Making London zero carbon can ensure • decarbonise London’s homes and AIM long-term economic growth and new workplaces while protecting the most If the world continues emitting business opportunities, alongside vulnerable by tackling fuel poverty London will be a greenhouse gases (GHGs) at today’s wider environmental benefits, such as levels, average global temperatures improved air quality and a healthier • develop clean and smart, integrated zero carbon city by could rise by up to five degrees Celsius society. The Mayor’s Energy for energy systems using local and 66 by the end of this century. London, Londoners programme aims to transform renewable energy resources 2050, with energy among other global cities, must play London’s energy system by reducing a leading role in helping to reduce energy demand and improving the • deliver a zero emission transport efficient buildings, these emissions. security of supply by ensuring more network by 2050. local energy is produced. This will help clean transport and The Mayor will re-establish London’s keep energy bills fairer, thus protecting position as a leader in tackling climate the most vulnerable, and reducing LONDON’S ENVIRONMENT NOW clean energy. change by setting a target for London carbon emissions. to become zero carbon by 2050. The key evidence to support the Mayor’s Making London zero carbon will require This change will not be without its ambitions for a zero carbon London by economy-wide decarbonisation. This challenges. Many of the technologies 2050 is summarised below. You can find will involve changes to the way in and fuels needed to achieve this goal out more about the evidence behind the which Londoners travel, work and live, already exist, however, more energy policies and proposals in Appendix 2. including how energy is sourced and infrastructure will be needed to generated. Energy efficiency will have to support London’s growing population The UN Paris Climate Agreement increase dramatically, leading to homes and this must be low carbon. National commits to keeping global warming and workplaces being highly insulated. government, London boroughs, below 2°C. This agreement has shown The fossil fuels used for heating and communities and Londoners themselves that cities can work together to plot a powering buildings, transport, and must play a part in leading this change. path to a lower carbon future. In addition, industry will have to be replaced by the 2008 Climate Change Act requires renewable electricity and gas. London’s To fully decarbonise London, GHG an at least 80 per cent reduction in CO2 grids will need to become smarter at emissions will need to be reduced from emissions (compared to 1990 levels) for balancing energy demand with available around 38 megatons today to near zero the whole of the UK. For more details on supply, and low carbon travel will be the by 2050. To make this happen, London the legislative and policy background default option. will require careful but far reaching see Appendix 4, and for information on reforms, which are underpinned by three the main responsibilities of a range of high-level objectives: organisations see Appendix 3.

66 IPCC AR5 range for BaU is 2.6 to 4.8 by 2100: https://www.ipcc.ch/report/ar5/ LONDON ENVIRONMENT STRATEGY 187

London has reduced its emissions London’s current carbon emissions despite a growth in population, and BOX 18: WHY CARBON BOX 18: WHY CARBON In 2014, London’s GHG emissions were has shown that carbon reduction and (CONTINUED) estimated at around 38 MtCO2e (million economic growth can go hand in hand. Carbon dioxide (CO2) is by far the tonnes of carbon dioxide equivalent), most common GHG emitted by city, reducing the capital’s total around seven per cent of the UK’s Global climate change human activity in terms of quantity reported emissions by around 40 total emissions. London’s emissions There is overwhelming scientific released and total impact on global per cent. Clearly, this would unfairly are reducing, having fallen by 16 per consensus that human activities are warming. As such, carbon and penalise other areas of the country cent since 1990 (Figure 30), largely causing global climate change, mainly CO2 have become the common that generate the energy which due to reduced gas consumption due to the burning of fossil fuels. There shorthand terms used when London consumes. London’s zero and decarbonisation of the national is now around 40 per cent more carbon accounting harmful GHGs. London’s carbon targets therefore include electricity grid. To achieve the Mayor’s in the atmosphere than there was before carbon accounting is measured both direct and indirect emissions, zero carbon target by 2050 the rate 67 the industrial revolution (see Box 18 for where possible in carbon dioxide as defined in scope 1 and 2 of the of emissions reduction must be 69 why the focus is on carbon). Such high equivalent or “CO2e” emissions. Greenhouse Gas Protocol. increased threefold over progress levels have not been experienced on This includes the conversion of to date since 1990. Earth for at least 800,000 years and in other GHGs, such as methane from Manufactured and purchased goods all likelihood not for the last three million landfill, and nitrous oxide and black also have emissions associated with Sources of greenhouse gas emissions years.68 Annual average concentrations carbon from transport emissions, generation at source, most often in London of GHGs have risen from around 280 into their equivalent CO2 emissions outside of the city. These ‘scope London’s GHG emissions are dominated parts per million (ppm) in 1900 to a based on their relative global 3’ emissions are harder to trace by buildings and transport (Figure 29). In record 400 ppm in 2016. The effects of warming potential. For consistency quantitatively but are estimated to 2014 it is estimated that 35 per cent of these GHGs are being felt now. 2016 was with national and international account for as much as three times emissions were generated from London’s the warmest year on record, almost one measurement of CO2e emissions the size of direct emissions. The homes, 42 per cent from workplaces degree Celsius above the 20th century and targets London’s GHG accounting of London’s scope 3 and 23 per cent from transport. global average. The five warmest years emissions are measured against targets are embedded within the Decarbonising London will mean taking on record have all occurred since 2010. a 1990 baseline unless stated principles of a circular approach a targeted approach to each sector. otherwise. to London’s waste (see Chapter 7: This will include retrofitting existing Waste) and although not included buildings as well as making sure that new If London only accounted for the in the pathway to zero carbon, we developments are part of the solution GHG emissions within its boundaries will continue to measure scope towards achieving a zero carbon city. it would ignore all indirect emissions 3 emissions for the city and associated with electricity must avoid merely outsourcing generation outside the our emissions.

67 Atmospheric CO2 content based on ice core records from a combination of studies. Eggleton, R. A (2013). A Short Introduction to Climate Change 68 Yale School of Forestry & Environment Studies (2017) How the World Passed a Carbon Threshold and Why It Matters, Available at: http:// 69 The Greenhouse Gas Protocol is the worlds most widely used international carbon accounting tool. Details of the protocol and it’s e360.yale.edu/features/how-the-world-passed-a-carbon-threshold-400ppm-and-why-it-matters (Accessed: 11/07/2017). standards, guidance and tools are available at: http://www.ghgprotocol.org/. TYPE OF GRAPH: CLIMATE CHANGE AND ENERGY

LONDON ENVIRONMENT STRATEGY 189

Reference

Fig 1: Greenhouse gas emissions and population in London, 1990 to 2014

Figure 29: 2014 emissions by sector (LEGGI) Figure 30: Greenhouse gas emissions by sector and population trends 1990 to 2014

) 30 9 % 23 t ( r H 25 o o 8.5 sp m n e ra s T (3 20 5 % 7.5 ) Residential gas, 19% 15 Residential electricity, 16% 7 10 Residential other fuels, 1%

6.5 Non-residential gas, 10% 5 Population (millions) Population

Non-residential electricity, 31% GHG emissions London 0 6 Non-residential other, 2% 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Large industrial and waste, 1%

Road Transport, 17% Population Domestic Industrial and commercial Transport

Rail and shipping, 3%

Aviation, 2% (Note: figures pre-2000 are extrapolated from 1990 and sourced from LEGGI and ONS) Source: GLA (2017), London Energy and Greenhouse Gas Inventory Source: GLA (2017), London Energy and Greenhouse Gas Inventory

Available at: data.london.gov.uk/dataset?q=leggi

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r o W grow, existing UK and Mayoral polices driving emissions reduction at a UK and alone will not be enough to meet the city level could take London to a 25 per scale of decarbonisation required. A cent reduction on 1990 levels by 2050. zero carbon scenario has been modelled To get to zero carbon, the modelling for London, which sets the envelope for shows an extra 45 per cent can and must Source: Greater London Authority (2017) emissions reduction out to 2050 and is be achieved through the decarbonisation detailed in Appendix 2. The London Zero of energy grids and other actions at a UK Carbon Pathways Tool is available at level in line with policies and proposals https://maps.london.gov.uk/zerocarbon needed to achieve UK carbon budgets. LONDON ENVIRONMENT STRATEGY 191

TYPE OF GRAPH: CLIMATE CHANGE AND ENERGY

The remaining 30 per cent reduction of London’s residual emissions will need Reference could be met through increased action to be addressed through emissions at a city level. Of this, up to 20 per offsetting or negative emissions cent could be achieved by developing technologies (such as carbon capture and putting in place new policies and storage). This will allow for emissions and enhancing existing policies and from energy grids, historic building programmes for London. However, stock, aviation and industry that cannot much of this action is reliant on new be reduced directly (Figure 31). powers and funding. Up to ten per cent Fig 2: London's zero carbon GHG emissions trajectory

Figure 31: London’s GHG emissions trajectory to zero carbon

50 -10%

e) 0% 2 45 10% 40 20% 35 30%

30 40%

20 50% 60% 15 No additional action 70% Reduction over 1990 levels Reduction London’s emissions (MCO London’s 10 With additional electricity and gas grid decarbonisation 80% With additional local actions 5 90% Reported Emissions – LEGGI 0 100% 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Source: GLA (2017), Modelling including BEIS and Committee on Climate Change datasets

Source: GLA (2017), Modelling including BEIS and CCC datasets Available at: www.london.gov.uk/what-we-do/environment/climate-change-weather-and-water/climate-change-and-weather LONDON ENVIRONMENT STRATEGY 193

TYPE OF GRAPH: CLIMATE CHANGE AND ENERGY

National energy supply There is, however, no equivalent pathway A key way to support decarbonisation London’s potential carbon roadmap The vast majority of London’s energy towardsReference the decarbonisation of the of both electricity and gas grids in Action across all sectors is required to demand (approximately 94 per cent) national gas grid, making gas, and London is by increasing the proportion keep London on track to 2050. We have is currently sourced from outside of by association heat one of the major of renewable and local decentralised developed scenarios to 2050 for the ten the city. London can never be fully challenges in realising a zero carbon energy. Local energy generation and main sectors that contribute to London’s self-sufficient in energy even if energy future. Gas use in London represents communal heating networks currently emissions (see Appendix 2) based demand is reduced and more renewable around half of total energy consumption, supply the equivalent of six per cent of on forecasts of likely future demand, energy is generated within the city (contributing 30 per cent of London’s London’s energy, with approximately technological change and changes in boundaries, because of limited space. total emissions). Most of this gas is used a quarter of this from renewable supply. Figure 32 summarises these

That’s why London’s zero carbon for heating in buildings. generationFig 3: Zero including carbon sector solar trajectories and trajectories for the three main sectors. scenario is intrinsically linked to the wind power. decarbonisation of the UK’s electricity Natural gas will continue to play a and gas grids. valuable role both in the short and Figure 32: Zero carbon sector trajectories medium term for heating and for In London, electricity demand electricity generation as we make the accounts for almost half of the total transition to a low carbon economy.

60 CO2 emissions. This fraction has been While natural gas is a fossil fuel, there decreasing rapidly in recent years due are some opportunities to decarbonise 50 to decarbonisation of the national the gas grid such as significant uptake electricity grid. Total UK renewable of biogas or conversion of the gas 40 electricity generation has increased grid to use hydrogen. However a lack to record levels of around 25 per cent of clear government strategy on the 30 in 2015, up from 19 per cent in 2014, future of gas has led to uncertainty on 20 while coal generation has reduced from the wider approach to the long term 30 per cent of generation in 2014 to 22 decarbonisation of heat. For this reason, 10 per cent in 2015. There is a proposed London must develop a flexible and more national pathway to further decarbonise decentralised energy supply system. This MTO 0 the electricity grid, with generation from is one that can adapt to future changes 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 renewable and nuclear energy sources and avoid lock-in to technologies that projected to double by the early 2030s. may become defunct in future decades. Domestic Industrial and commercial Transport

Source: GLA (2017), Modelling including TfL datasets Source: GLA (2017), Modelling including TfL datasets. Available at: www.london.gov.uk/what-we-do/environment/climate-change-weather-and-water/climate-change-and-weather LONDON ENVIRONMENT STRATEGY 195

The pathway to meet this ambition can of managing London’s energy system, By 2050 the vast majority of London’s to London’s buildings and vehicles. A be broadly split into short, medium helping to balance more intermittent building stock will need to have been smart and integrated approach (see Box and long-term objectives. Leaving supply of energy from renewables with retrofitted with measures to deliver high 19) will need to optimise these systems, actions to future generations or later more variable electricity demand from levels of energy efficiency. Remaining removing the need for fossil fuels decades would risk unprecedented, electric cars, or electric heating. Added demand will need to be met by clean through storing renewable energy at and potentially unachievable, rates of strain on the electricity grid can partially energy systems, dominated by the times of high generation for use at decarbonisation in the 2030s and 2040s. be managed through the use of storage, supply of renewable electricity and gas times of high demand. such as hot water cylinders to store In the next five years a large part of heat, or batteries to store electricity carbon reduction can be met through generated off-peak. BOX 19: A SMART ENERGY FUTURE decarbonisation of the national power grid, increased energy efficiency, and These balancing mechanisms, In the context of energy, a smart city is intelligently programme their time of zero carbon new development. collectively known as demand-side one that optimises its supply and use operation, optimising demand when response, will also allow consumers of energy. Energy consumption and renewable generation is available. This Over the next two decades, dependence to use energy when it is cheaper, such emissions can be minimised, the use of will become increasingly important as on natural gas must be reduced by as overnight. This will reduce the peak renewables maximised and the supply more intermittent energy such as solar increasing the use of low carbon heating demand on the national grid, most to consumers done so at the least and wind is deployed in the UK. (harnessing energy from water, ground associated with high-carbon cost. Advanced process control is able and air using heat pumps) as well as generation, and help avoid to predict demand and control energy Where renewable generation cannot capturing more of the heat wasted from bottlenecks in grid capacity. systems to meet specific objectives be used instantaneously, storage will our buildings and infrastructure and such as to avoid energy peaks. play an important role, capturing this using heat networks in the densest areas By 2030 at the latest the UK government Increased use of smart metering energy for times when it is needed, of the city to distribute it to our homes must also confirm its approach for the (see proposal 10.1.1d) will empower rather than using more carbon- and workplaces. We must continue to long-term role of gas to allow for the full consumers to engage more with their intensive fuels and technologies. improve the energy efficiency of our decarbonisation of London’s heating energy use and enable the market existing buildings and scale up low systems by 2050. With a clear view on to develop solutions to help them Over time a smart and flexible energy emission vehicles. what the energy content of gas and reduce their energy bills and use system could reduce London’s peak electricity should be in 2050, this would less primary energy. demand by one gigawatt, a saving Demand on the electricity grid will likely then allow a minimum 20 year period to that could avoid investment in future increase due to the growing population move to new zero carbon heat supply. In a more connected city every energy networks by up to billions of and electrification of heat and transport. By 2040 the majority of public transport supermarket freezer, every washing pounds, passing these savings on to Smart technology (Box 19) will need to will be zero emission. machine and every electric car could the consumer. become an increasingly important part

Figure 33 shows the key actions that are required to put London on track to zero carbon by 2050. Government, business and Londoners will need to help put these actions into practice. LONDON ENVIRONMENT STRATEGY 197

Figure 33: What is needed to put London on track to zero carbon by 2050

Minimum Central energy effciency All new Zero carbon London transport Smart performance buildings zero Central new homes emissions surcharge standards for all carbon meter in every London Ultra home rented properties Low Emission Zone (ULEZ)

ULEZ expanded to inner London for light vehicles

15% of demand Insulation of met by remaining lofts Zero GLA car 40% UK renewable and cavity walls waste to landfill fleet zero emission Local zero reduction in carbon Government and community and replacement capable emission emissions over decision on the energy of remaining zones 1990 levels long term role low efficiency of natural gas gas boilers

From All GLA group heavy vehicles are fossil fuel–free

City wide deployment of All bus Gas and 2 GW of solar any remaining zero emissions low carbon fleet zero electricity networks PV installations residual emissions from all transport heating systems emission reach zero carbon offset and buildings eg. heat pumps TYPE OF GRAPH: CLIMATE CHANGE AND ENERGY

Reference LONDON ENVIRONMENT STRATEGY 199

Fig 5: Concept of carbon budgets

Managing the pathway to 2050 which can be rolled out quickly without AverageFigure annual 34: emissionsCarbon budgets illustrative chart for London The pathway to London becoming compromising future options. This is the during zero carbon by 2050 is challenging. In best method of ensuring that emissions particular, the trajectory for reaching reductions occur continuously, with the the 2050 target is likely to become avoidance of costly one-off reductions. increasingly challenging after the early 1st budget period 2020s. National policies and actions The Mayor is considering introducing a that needed to be in place now to set system of five-year carbon budgets to London on an ambitious trajectory, such create an emissions pathway to 2050 2nd budget period as the Green Deal and a progressive that can be adapted as circumstances annum per 2 feed-in-tariff for small scale renewable or technologies change. The concept energy generation, have not materialised. of carbon budgets is not new; the UK rd Indeed, the support through these government adopted statutory carbon MtCO 3 budget period programmes has either reduced budgets through the 2008 Climate significantly or stopped entirely. Change Act. Carbon budgets for London, if adopted, would align with the UK The previous London Climate Change carbon budget periods, with the first Mitigation and Energy Strategy had starting in 2018 - 22. projected that London would need to 2018–22 2023–27 2028–33 have reduced its CO2 emissions by Carbon budgets would provide greater 60 per cent by 2025 to be on track to clarity and certainty for London (and Source: GLA (2017) reducing London’s CO2 emissions by 80 the UK) to effectively plan for and invest Source: GLA (2017) per cent by 2050. Without a significant in a low carbon economy. It would also Available at: increase in ambition in national policy, offer the flexibility necessary to respond or devolution of powers to the Mayor to factors outside our control (such as to enable him to catalyse action, this the weather and global fuel and energy trajectory looks increasingly unlikely. prices). This flexibility means they also have the benefit of reducing the risk It is therefore critical that London is put of ‘lock in’ to carbon intensive patterns back on a zero carbon pathway. The of production and consumption. Mayor is proposing to adopt a trajectory that is both ambitious and realistic. It is important that this trajectory takes a view across all sectors to focus on the most cost effective interventions LONDON ENVIRONMENT STRATEGY 201

Modelling suggests that within the first Energy for Londoners carbon budget period (2018-2022) Existing climate change and energy BOX 20: ENERGY FOR LONDONERS London can achieve a 40 per cent programmes in London achieved a reduction in carbon dioxide emissions reduction of 670 ktCO2e in 2015; a To place London on track to a zero decentralised energy, renewable on 1990 levels. This is more than national threefold increase on 2011 levels. While carbon city Energy for Londoners will: generation, especially solar, carbon budgets over the same period. this is significant in terms of the savings community energy programmes The Mayor intends to use his powers at a building level, this represents only • accelerate the retrofitting of buildings, while encouraging energy • protect the most vulnerable and and programmes to put London on this two per cent of London’s tackle fuel poverty track, but to achieve the target requires energy demand. demand reduction and energy government to deliver early action to management practices, smart • tender for the delivery of an energy meet UK electricity grid decarbonisation The Mayor’s new Energy for Londoners meter roll-out and demand supply company, aiming to offer projections out to 2022 and urgently programme will help speed up work side management fairer energy bills to Londoners as clarify its policy and support through to decarbonise London’s homes and • decarbonise London’s energy soon as possible workplaces and develop clean energy its upcoming emissions reduction plan supply by developing and delivering • attract finance for energy efficiency systems (Box 20). and through the Levy Control Framework. and renewable energy

Without decarbonisation at a national level, London is expected to achieve ENERGY FOR LONDONERS only a 34 per cent reduction during this budget period. Objective 1 Objective 2 In the absence of this long-overdue Reduce emissions of London’s Develop clean and smart policy clarity from national government, homes and workplaces while integrated energy systems final carbon budget levels will be protecting the most vulnerable by utilising local and renewable defined as an outcome of this strategy tackling fuel poverty energy resources consultation. The Mayor will be undertaking a more detailed ‘bottom- up’ analysis over the coming months to Fair tariffs Decentralised energy more accurately project what emissions reductions are realistically achievable Solar generation and over the carbon budget periods. Energy efficiency community energy

A smarter grid with demand Fuel poverty support side management LONDON ENVIRONMENT STRATEGY 203

TYPE OF GRAPH: CLIMATE CHANGE AND ENERGY

Reference

London’s new buildings London’s existing buildings Figure 35: Typical energy use breakdown Fig 7: Emissions and energy use in London’s existing homes As London grows in population, London’s buildings have been built over

new buildings will be built to meet hundreds of years, and their energy OMES ORLAES the increasing demand for housing, efficiency varies considerably (Figure associated facilities such as schools, 35). We now use more energy to heat and and places of work. New developments power our buildings in London than for

have an important role to play in reducing anything else. Buildings are responsible Catering; 10% GHG emissions and harmful pollutants. for around four-fifths of London’s total TYPE OF GRAPH: CLIMATE CHANGE AND ENERGY Computing; 5% GHG emissions and 70 per cent of final Space heating; 58% Cooling and Ventilation; 6% New zero carbon buildings standards, energy use. This year, over £7bn will Hot water; 10% Hot Water; 6% pioneered in the London Plan, mean be spent on heating and powering our Cooking; 3% Reference that a home or workplace built today buildings across London. Heating: 45% Lighting and applicences; 29% requires a much smaller amount of Lighting; 10% energy than an older building. But By 2050 the emissions footprint of between now and 2050, building codes London’s buildings will need to be close Other; 18% must continue to tighten to guide new to zero. Some will even need to be building construction to achieve far climate positive, that is, they will need higher efficiency standards and greater to generate more clean energy than renewable energy production. Where Fig 7:they Emissions consume. and energy use By in 2050London’s someexisting homes 1.3 million high building standards cannot be new homes and over ten million square achieved onsite, offsetting schemes metres of newOMES schools, hospitals and Source: BEIS (2016),ORLAES Digest of UK Energy Statistics (DUKES) should be available to developers and workplaces are needed. This will lock Available at: www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes implemented by boroughs. This will in emission patterns for 60-120 years ensure carbon savings can be (the average building and infrastructure Catering; 10% maximised across London. lifespan). These buildings will have to Computing; 5% reduce their energy. This will be throughSpace heating; 58% Cooling and Ventilation; 6% better insulation and using more energyHot water; 10% efficient products. They must also Hot Water; 6% Cooking; 3% get their heat and power (including Heating: 45% increasingly for cooling) from local andLighting and applicences; 29% renewable energy sources enabled by Lighting; 10% efficient systems such as heat networks. Other; 18%

Source: BEIS (2016), Digest of UK Energy Statistics (DUKES) Available at: www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes Source: BEIS (2016), Digest of UK Energy Statistics (DUKES) LONDON ENVIRONMENT STRATEGY 205

Emissions and energy use in London’s of their energy and contributing existing homes significantly to London’s GHG emissions. London’s 3.4 million homes are This year, Londoners will spend over responsible for around one third of £3.9bn on heating and powering their London’s total GHG emissions. Nearly homes. Over 10 per cent of London’s three quarters of the energy we use in households were in fuel poverty in 2015. our homes is for heating and hot water. Ninety per cent of this is currently met By 2050 the emissions from London’s using gas-fired boilers that contribute homes will need to reduce to around 1.0 directly to climate change, and air MtCO2e a year from 12.2 MtCO2e today pollution in the capital. The cost can (Figure 36). This implies over an average also be difficult for some households to of 100,000 homes being retrofitted with afford. Our continued use of gas exposes energy efficiency improvements and us to energy security issues and price renewable technologies each year, to volatility, as UK reserves decline. 2050. Since 2009, programmes such as RE:NEW and the London Boiler Cashback Credit: Smart Energy GB The poor energy efficiency of London’s Scheme have treated 134,000 homes. homes is a major contributor to our Many of these of these homes require GHG emissions. A quarter of London’s further improvements to maximise homes that have been given an Energy energy efficiency and carbon savings. Performance Certificate since 2009 have A step-change in the scale and pace of the worst energy ratings of E, F or G. As our energy efficiency retrofitting needs such, they are wasting a large proportion to start now.

Credit: Fraser Brown Mackenna Architects LONDON ENVIRONMENT STRATEGY 207

Figure 36: Emissions and required reductions required from London’s homes BOX 21: THE CHALLENGE OF RETROFITTING LONDON’S HOMES

20 London is different to the rest of leaseholders and freeholders. Flats the country, making it harder to also have more limited roof space e)

2 retrofit homes with energy efficiency and can cause overshadowing, which 15 measures and low carbon supply. reduces the potential for solar PV London’s homes are far more • privately rented – around 28 likely to be: 10 per cent of all London’s homes (compared with 18 per cent in the • solid walled – sixty per cent of all rest of England). London has the London’s homes (a fifth of England’s

Carbon emissions (MtCO highest proportion of private rented 5 total). This makes them more sector homes in the UK. Landlords expensive and physically challenging often have little incentive to improve to retrofit than homes with cavity the energy efficiency of their 0 walls. This is due to the higher costs properties as they do not receive 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 of the external and internal solid wall any benefit from the savings on insulation and the disruption caused energy bills from the installation, for example the Historic transport emissions Projected transport emissions need to redecorate rooms and some • in a conservation area – half of Source: GLA (2017) loss of room area England’s total. Certain types of glazing, solid wall insulation and low • flats – fifty per cent of all London’s carbon technologies may be deemed homes (compared with 16 per less suitable or incur further costs cent in the rest of England). Flats The physical challenges of London’s national zero carbon homes policy. As to install. Planning requirements are harder to retrofit than a single homes can make delivering energy noted by the Committee on Climate can also act as a barrier for making dwelling with measures such as efficiency measures more difficult and Change, progress improving the energy some of these improvements and external wall insulation and energy expensive than in other parts of the efficiency of buildings has stalled since even outside conservation areas, efficient glazing often needing to country, as well as involving disruption 2012: annual rates of cavity wall and loft permitted development rights, for be installed in all dwellings within and cost (Box 21). Moreover, the UK insulation nationally in 2013-2015 were example for external wall insulation, a building at the same time. This government has reduced funding for 60 per cent down and 90 per cent down are not applied consistently energy efficiency and cancelled the respectively on annual rates in 2008-2012. requires agreement from tenants, LONDON ENVIRONMENT STRATEGY 209

TYPE OF GRAPH: CLIMATE CHANGE AND ENERGY The impacts of climate change also There is increasing evidence that living In London it is estimated that: • if homes do not reach the present challenges to London’s homes in a cold home is associated with poor government’s fuel poverty target of (existing and new). For example, health outcomesReference and an increased risk • around 82,000 privately rented Energy Performance Certificate band temperatures in London are predicted of morbidity and mortality for all age properties are associated with excess C by 2030, the cost to the health to increase over the next few decades groups. The physical impacts of living in cold (a hazard resulting from threats to service in treating associated illness regardless of the action to reduce a cold home are causing acute suffering health from cold indoor temperatures), in London’s homes could be more than emissions (Chapter 8: Adapting to for many Londoners. Children living and the cost to the NHS of not £4bn over the next 14 years 75 climate change). Homes will need to in cold, damp and mouldy homes are improving them is £18.9m per year reduce the requirement for energy- almost three times more likely to suffer intensive air conditioning without from respiratory illnesses. Evidence on Fig 11: Proportion of households in fuel poverty at LSOA level (2014) 76 inadvertently causing overheating both poor indoor and outdoor air quality Figure 37: Proportion of households in fuel poverty at LSOA level (2014) that adversely affects their occupants. highlights that infants living in cold conditions have a 30 per cent greater Fuel poverty risk of admission to hospital or primary In 2015 there were 335,201 households care facilities. living in fuel poverty in London which equates to 10.1 per cent of all This can have a big impact on how households.70 Fuel poverty in England children perform at school. Examples is measured using the Low Income High include increased school absence due Costs indicator. Under this indicator, to illness or children being unable to a household is considered to be fuel find a quiet and warm place to study. In poor if it: addition, it is estimated that between 2011 and 2016 there have been 13,390 • has an income below the poverty excess winter deaths in London.72 line (including if meeting its required Estimates suggest that some 10 per energy bill would push it below the cent of excess winter deaths are directly poverty line) and 73 Proportion of households attributable to fuel poverty and 21.5 in fuel poverty per cent of excess winter deaths are 71 1.9% – 7.3% • has high than typical energy costs attributable to the coldest 25 per cent 7.4% – 10.2% 74 of homes. A World Health Organisation 10.3% – 13.4% 13.5% – 17.7% report states that as many as 30 per cent 17.8% – 31.0% of excess winter deaths can be attributed to cold housing.

Source: BEIS (2016), Fuel poverty sub-regional statistics 70 BEIS (2017), Sub-regional fuel poverty England statistics 2015. Accessed from: https://www.gov.uk/government/collections/fuel-poverty- sub-regional-statistics Source: BEIS (2016), Fuel poverty sub-regional statistics 71 Further detail on how these thresholds are derived can be found here: www.gov.uk/government/collections/fuel-poverty-statistics 72 Office of National Statistics, 2016, Statistical bulletin: Excess winter mortality in England and Wales: 2015/16 (provisional) and 2014/15 Available at: www.gov.uk/government/collections/fuel-poverty-sub-regional-statistics (final). 73 UCL Institute of Health Inequality, 2014, Local action on health inequalities: Fuel poverty and cold home-related deaths 75 BRE (2011), The Health Costs of Cold Dwellings 74 Rudge, 2011, Indoor cold and mortality. In Environmental Burden of Disease Associated with Inadequate Housing, (Bonn: World Health 76 The statistics shown should be interpreted as a modelled estimation of fuel poverty in local areas and the actual situation (i.e. numbers of Organisation (Regional office for Europe)), p. 81. fuel poor households) may vary from these statistics in some locations. LONDON ENVIRONMENT STRATEGY 211

Tackling fuel poverty will require a London’s existing workplaces By 2050, emissions from workplaces will • complex relationships between number of challenges to be addressed The energy used for heating and need to be reduced to keep the financial freeholders, leaseholders and tenants from income levels to the type of home. powering our workplaces is responsible impact on businesses to a minimum, as which has meant difficulty in getting Energy efficiency is a key component in for over 40 per cent of London’s well as help them capitalise on future schemes off the ground reducing rates of fuel poverty. But energy emissions. Three quarters come from opportunities that will come through efficiency is not the only solution. The private businesses, with the remainder the move to a low carbon economy. • a lack of low-cost financing for energy predominant cause of the increase in fuel from public buildings (Figure 38). Currently, 37 per cent of non-residential efficiency measures. These barriers poverty in London is low incomes. There Electricity use for lighting and buildings given an Energy Performance are particularly relevant for SMEs is therefore a need to maximise incomes, cooling is more significant than Certificate since 2009 have energy employing fewer than 250 people. alongside ensuring the fuel poor are able for residential buildings. ratings of E, F or G. This means they are These small companies comprise over to access cheaper energy tariffs more wasting energy and money. This year, 90 per cent of businesses in London easily. The Mayor’s draft Fuel Poverty over £3.1bn will be spent on heating and Action Plan sets out his plan for tackling powering London’s workplaces. • lack of financial incentive or imperative this problem in London, and a summary to retrofit energy efficiency measures of the actions can be found in Proposal Many barriers to reducing emissions as energy costs are a relatively small 6.1.2a. in workplaces have limited the roll-out proportion of operational costs – of energy efficiency measures. Key especially when compared to, problems are: for example, staff payrolls.

Figure 38: Emissions and required reductions required from London’s workplaces • a lack of capacity to identify and install and industry appropriate energy-saving measures

25 • long-term payback periods so that such investments are not a priority

20 e) 2

15

10

5 Carbon emissions (MtCO

0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Historic non-residential emissions Projected non-residential emissions

Source: GLA (2017) LONDON ENVIRONMENT STRATEGY 213

Figure 39: Emission reductions required from transport Transport other emissions accounting in this Transport accounts for around one fifth chapter as full lifecycle emissions are of London’s greenhouse-gas emissions, considered (scope 1, 2 and 3). London 12 the vast majority from road transport. has developed two methodologies, GHG emissions from transport must estimating both the total emissions from

e) 10 reduce from around 8.6 MtCO2 London’s waste activities as well as the

2 e a year to 1.5 MtCO2e a year by 2050 (Figure 39). carbon intensity of energy generated 8 from residual waste. Actions to address Policies to reduce GHG emissions from both direct and indirect emissions from

6 transport in London in this strategy are the management of London’s waste are consistent with those in the draft Mayor’s set out in chapter 7.

4 Transport Strategy. Measures set out Carbon emissions (MtCO in the draft Mayor’s Transport Strategy Roles and legal duties 2 2 will reduce CO emissions from road, rail The Mayor has a legal duty to set out and shipping in London by 72 per cent policies and proposals in this strategy by 2041. This will set London’s transport for mitigating climate change, as well 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 emissions on a clear trajectory to reach as a duty to take action on adapting to the Mayor’s ambition of a zero carbon climate change. Historic transport emissions Projected transport emissions London by 2050. Although the Mayor has no direct Aviation is covered in Proposal 4.2.2b. powers to encourage building retrofit Source: GLA (2017) It is perhaps the most difficult transport for greater energy efficiency, except for sector to decarbonise. At present, it major refurbishments requiring planning contributes to around two and a half consent, the London Plan sets the per cent of London’s monitored GHG standard that new developments emissions under the London Energy should achieve. and Greenhouse Gas Inventory. This is around 950,000 tCO2e a year (for airport The Mayor also has no direct powers in operations and take-off and landings).77 the energy market. A fully functioning If unmanaged, emissions from the smart energy system is likely to proposed Heathrow expansion are require an overhaul of commercial likely to increase by around a third. and regulatory relationships between distribution, supply, generation and GHG emissions from waste transmission companies. Direct GHG emissions from London’s waste activities represent 0.2 per cent of London’s total emissions. Accounting of waste emissions is discrete from

77 GHG emissions from aviation are defined as emissions from aviation sources up to 1km above the ground LONDON ENVIRONMENT STRATEGY 215

INSIDE THE ZERO CARBON HOME

Solar panels: Low-flow water fixtures: Convert sunlight into Reduce water usage renewable electricity and heat

Home energy manager: Green roof: A control panel inside To manage rainwater and the home that allows increase biodiversity homeowners to manage energy consumption Efficient building materials:

Triple glazing, solar shading Heating and cooling system: and insulation to reduce energy Highly efficient low carbon demand energy supply through district heating or individual building heat pumps Smart appliances and energy storage: Batteries, high efficiency Water harvesting: lighting, smart electronic Greywater harvesting for devices and white goods allow toilet flushing and rainwater flexible use of electricity to collection for irrigation optimise consumption and reduce costs

Zero carbon electricity: Renewable generation provides clean energy from the grid LONDON ENVIRONMENT STRATEGY 217

Objectives, policies and proposals

OBJECTIVE 6.1 REDUCE EMISSIONS For existing buildings the Mayor 1. boost the incomes of people in fuel “Alleviating fuel OF LONDON’S HOMES AND has identified a number of actions poverty WORKPLACES WHILE PROTECTING that are required to reduce emissions. poverty is a key THE MOST VULNERABLE BY TACKLING These include: 2. increase the energy efficiency of FUEL POVERTY London’s homes element of the • helping Londoners improve the Approximately 80 per cent of the energy efficiency of their homes and 3. ensure Londoners in fuel poverty can buildings today will still be standing in Mayor’s ambition workplaces through technical advice, access fairer and more affordable 2050. By 2050 some 1.3 million new support and funding energy tariffs to become a zero homes and over ten million square metres of new schools, hospitals and • piloting new approaches to retrofitting Policy 6.1.1 Policy 6.1.1 Improve the carbon city.” workplaces are needed, which will which make existing homes zero energy efficiency of London’s homes increase the amount of energy required. energy and eradicate energy bills and support the transition to low Energy efficiency is the first and best carbon heating and power through fuel, and is often the most cost-effective • lobbying government for financial Energy for Londoners way to decarbonise buildings. It also support and regulatory change to Proposal 6.1.1a Contribute to helping saves households and businesses money speed up the retrofitting of homes on their energy bills. That makes it one Londoners improve the energy of the key ways to help ensure that the • support the roll out of smart meters efficiency of their homes, where poorest and most vulnerable households to provide Londoners with the appropriate, by providing technical are able to heat their homes affordably. information they need to make assistance, support and funding better low carbon choices Many energy efficiency measures such Emissions will need to be reduced as loft and cavity wall insulation are cost from new and existing buildings. • tendering for the delivery of an energy effective, and help people save money Through the London Plan, the Mayor supply company, aiming to offer fairer on their bills. There is some support will ensure greater planning standards energy bills to Londoners as soon available from the government to help for new developments so new buildings as possible roll-out these measures. But the pace are highly efficient and incorporate and scale of the change needed to renewable energy where appropriate. • scrapping of the most polluting boilers retrofit London’s homes and to overcome from workplaces. the barriers that London faces requires more effort from all involved. Alleviating fuel poverty is a key element of the Mayor’s ambition to become a zero carbon city. The Mayor’s Fuel Poverty Action Plan aims to: LONDON ENVIRONMENT STRATEGY 219

The Mayor will build on current • help boroughs to maximise the use The Mayor wants to help Londoners initiatives (Box 22) to design and of funds collected through carbon BOX 22: CURRENT reduce their energy demand and roll-out a world-class homes energy offsetting from new zero carbon PROGRAMMES generate their own heat and electricity efficiency programme as part of development, to increase the AND INITIATIVES in low carbon ways, where appropriate. Energy for Londoners. This includes investment in existing homes While energy efficiency measures the introduction of a successor to the RE:NEW Programme – helps typically save carbon and money they current RE:NEW programme. The aim • aggregate demand and connect project boroughs and social housing can be more expensive to install, and is to continue to support boroughs funding, including through the Mayor’s providers overcome these so some financial support is necessary and housing providers but extend the Energy Efficiency Fund challenges, and make their housing to support the up-front costs. To help service to private landlords, where stock more energy efficient by finance energy efficiency improvements possible, across London to retrofit more • develop projects with boroughs to giving them technical support. and cleaner and low carbon generation homes with enhanced energy efficiency achieve positive health outcomes Since 2009 alone the RE:NEW the Mayor will investigate new finance measures. The Mayor will consider how programme has helped improve arrangements. This includes revolving technical assistance and advice could: • help the replacement of inefficient over 130,205 of London’s homes, loans, incentives or grants, which do not communal boilers, and the connection saving around 46,000 tCO2 a year rely on government subsidy, to enable • mobilise the action required to to existing low temperature and almost £8.85m in annual energy more Londoners to improve their homes. achieve the easier measures including heat networks bill savings. Coupled with wider replacing the 750,000 inefficient market delivery, around 603,000 Proposal 6.1.1b Pilot state of the art boilers and insulating the remaining • enable innovative area-based energy homes in London have been methods to implement the stronger lofts and cavity walls needed to get to efficiency retrofit approaches, retrofitted. It has also supported an energy retrofitting needed zero carbon by 2050 recognising the mix of tenure in estimated 48,000 fuel poor homes. London, so that owner occupiers, In the medium to longer term, the London Boiler Cashback Scheme – • enable deep home energy efficiency social landlords and private sector potential for cheap and easier measures the first of its kind at a city level, has projects, maximising the carbon landlords can better benefit from such as loft insulation and filling cavity replaced around 3,692 inefficient savings delivered in each retrofit funding opportunities, economies walls will be exhausted. That means boilers, delivering annual savings of of scale and streamlined planning. continuing to meet London’s zero carbon around 5,500 tCO2 and over £1.24m aspirations will require more major per year off Londoners’ fuel bills. It changes to existing homes, such as has at the same time reduced the solid wall insulation and new low carbon risk of carbon monoxide poisoning sources of heat supply and electricity. in London’s homes and improved To achieve this, additional steps will be air quality. needed to overcome greater challenges such as higher costs and disruption for householders. LONDON ENVIRONMENT STRATEGY 221

Through Energy for Londoners the Mayor The installation of rooftop solar PV There have been several government “The Mayor’s will help build a strong and expanding coupled with batteries is likely to be policies to support home energy market for deeper energy efficiency a key part of this pilot. Energy Leap efficiency. However many have been Energy Leap retrofitting so each home improvement will also try to establish the ‘value up- subject to continual change and can include all suitable measures lift’ that comes from installing solar, intermittent and inadequate funding, Project will deliver available. By increasing demand for home through post-retrofit valuations. If creating uncertainty in the market and improvements, energy efficiency measures successful, Energy Leap will lead to stalling implementation. To help provide some of the first and low carbon supply technologies (like a bigger project looking to overcome the energy efficiency measures required heat pumps and solar PV) will become a other key challenges including more in London, the Mayor will advocate to whole house zero cheaper option. That way they will be able complex building types and mixed- government the need for the following energy retrofits to compete with fossil fuels. tenure housing. national and regional action: To help achieve this, the Mayor’s Energy In addition to Energy Leap, the Mayor National actions in London and Leap Project will deliver some of the will explore alternative approaches to • accelerating implementation of the first whole house zero energy retrofits in deeper and whole-house retrofitting new ECO scheme with an enhanced the UK.” London and the UK. It will trial payment which could help make radical reductions ambition and introduce a successor to mechanisms including the ability to in household carbon emissions and the Green Deal to ensure that existing recoup some or all of the capital cost of energy bills. housing stock is quickly made more the refurbishment work through savings energy efficient on energy bills, maintenance and energy Proposal 6.1.1c Make the case to performance guarantees. This project government to introduce the long-term • extending, promoting and improving will also improve the look and feel of the regulatory and financial framework mandatory home energy efficiency home and bring greater awareness to to support and speed up the rate of standards, for example extending home energy use. energy efficiency the minimum standards in the Private Rented Sector Energy Efficiency The Mayor’s programmes alone cannot The Energy Leap project will act as a first Regulations to apply to social deliver the necessary energy efficiency pilot to prove the concept. If successful, housing and market sales measures in homes to meet the zero it will allow a larger demonstrator carbon target, it will also require to happen. This will help overcome • developing fiscal incentives to increase supportive policy and funding from other key challenges including more uptake of solid wall insulation and low national government. complex building typologies and carbon heating power, for example mixed-tenure properties. reductions in VAT (which could be LONDON ENVIRONMENT STRATEGY 223

done following UK’s exit from the EU), The Mayor will also offer to work to make positive changes to their home • easier switching – smoother and voucher schemes and low or zero with national government to: that will help cut energy bills and demand faster to switch suppliers to get the interest rate loans and contribute towards reducing carbon best deals • pilot revenue-neutral incentives emissions, they need timely, impartial, • issuing planning guidance on external which, subject to further scoping, and accurate information and advice. The government has committed to wall insulation to increase boroughs’ might include incorporating Energy mandating the offer of smart meters understanding and awareness of the Performance Certificate rating in the Smart meters will have a critical role to every London household and small technology and help householders and way Stamp Duty Land Tax is calculated. in building the foundations for a zero business, and delivering meters to all social housing providers prepare good This would act as a ‘trigger’ at the point carbon energy system for London. homes by the end of 2020. But the roll quality applications of purchase and enable home owners The first step is the installation of out is behind schedule. to claim rebates when they improve smart meters alongside the use of Regional actions the efficiency of their home flexible energy tariffs and more The Mayor will encourage all new • setting regional targets for energy energy efficient appliances. developments to install smart meters. supplier obligations, such as the ECO, • implement the recommendations Through Energy for Londoners, greater and other government-mandated of Each Home Counts (the Bonfield The rollout of smart meters has awareness of energy management will be support schemes in order to ensure Review) in London. This includes multiple benefits: promoted such as identifying the most that London receives its fair share using evidence from London’s retrofit energy efficient appliances, guidance of support projects to help develop and implement • they give near real time information on selecting the best energy tariffs and a quality mark and installer Code on energy use – expressed in pounds supporting ‘switch off’ campaigns and Local actions of Conduct for the residential and pence competitions. The Mayor will work • raising awareness by private retrofit sector with energy suppliers and Smart landlords of the need to comply • enable people to better understand Energy GB to establish smart meter with Private Rented Sector Energy and manage energy use, helping to roll-out campaigns and include their Efficiency Regulations Proposal 6.1.1d Improve the way them move to cheaper time of day installation as a measure through energy is managed in London including tariffs to reduce energy bills energy efficiency programmes. • working with local authority trading through supporting the roll out of standards teams to enforce Private smart meters and advocating time • bring an end to estimated billing – Rented Sector Energy Efficiency of day tariffs consumers will only be billed for the Regulations, including provision energy actually used, helping people of appropriate training. Individual actions and choices within to budget better homes can have an important impact on energy use. To enable householders

78 The Energy Company Obligation was previously focused on reducing carbon emissions from homes through the installation of energy efficiency measures. Part of ECO was ring-fenced for low income households to ensure that it was not regressive, given all households pay through their energy bills. However, successive governments have reduced to overall ambition, and therefore level of investment, of ECO, leaving a much smaller programme. Government decided that it would focus this smaller pot almost exclusively on low income households to alleviate fuel poverty. The current phase of ECO runs from April 2017 to October 2018 and is being treated as a transition from the changing focus from carbon emissions reduction to fuel poverty alleviation 79 Survey by London Association of Local Energy Officers (ALEO), 2016 LONDON ENVIRONMENT STRATEGY 225

Policy 6.1.2 Tackle fuel poverty To help reduce fuel poverty, the Mayor • providing guidance and support to in London and protect the most has already introduced the Better boroughs on how they can use data to “As part of Energy vulnerable through the Mayor’s Fuel Boilers pilot scheme80 which targeted identify households in fuel poverty Poverty Action Plan homeowners receiving benefits (as a for Londoners proxy for fuel poverty), and has helped • establishing a high-profile cross- Proposal 6.1.2a The Mayor will replace and repair 307 boilers, and install sectoral Fuel Poverty Partnership to the Mayor work with partners to help alleviate new heating controls. coordinate action in London fuel poverty in London through will introduce implementing the recommendations In addition to this scheme, the Mayor • calling on government to develop fiscal of the Fuel Poverty Action Plan has published a draft Fuel Poverty incentives for solid wall insulation and ambitious Historically, central government and Action Plan which will sets the actions review the Minimum Energy Efficiency the boroughs have taken the lead required to further alleviate fuel poverty Standard to remove exemptions and programmes to in providing fuel poverty support in London. The Mayor’s ambition is increase the number of properties programmes. However, central to reduce both the prevalence of fuel treated. make London’s government has reduced its support poverty in London and the ‘depth’ of for fuel poverty alleviation since 2012. fuel poverty that Londoners experience. Further details are in the draft Fuel workplaces more Remaining support is in the form of the Actions include: Poverty Action Plan and the Mayor Warm Home Discount78 and the ECO, welcomes feedback on this Plan during energy efficient which is now focused largely on • investing directly in energy efficiency the period of the consultation on this energy efficiency measures for programmes targeting carbon strategy. and low carbon.” low income households. reduction and tackling fuel poverty Proposal 6.1.2b Tender for the Many boroughs, given the financial • providing funding to support and delivery of an energy supply company, pressures they are under, have not been create local advice and referral aiming to offer fairer energy bills to able to maintain support for many of networks as a way of helping to Londoners and encourage Londoners their fuel poverty support programmes. improve the living conditions of fuel to switch and move away from 46 per cent of boroughs do not have poor households signposting the fuel pre-payment meters poor to more affordable energy tariffs any officer responsible for fuel poverty The UK energy market is currently and offering fairer energy through alleviation, and a further 46 per cent have dysfunctional and most customers pay fuel poverty as only part of an officer’s Energy for Londoners 79 too much for their electricity and gas. role. This leaves significant gaps in This national problem is particularly • implementing a programme to help the provision of support for households acute in London. The Competition and Londoners get access to all of the struggling to keep their homes warm and Markets Authority’s (CMA) 2014-16 pay for their energy bills. income support they are entitled to

80 Better Boilers has also removed harmful asbestos from many fuel poor homes (which causes around 5000 deaths every year in the UK), which had previously insulated old pipes and heating systems. The scheme also provided important learnings in relation to delivering fuel poverty support in London and the type of support vulnerable people need, which is helping to inform the development of new initiatives under Energy for Londoners. LONDON ENVIRONMENT STRATEGY 227

Energy Market Investigation identified While it is being established the Mayor heating and cooling. To achieve the The framework of 16 suppliers enables that 70 per cent of domestic customers will encourage people to switch energy Mayor’s zero carbon ambition by 2050 organisations to procure suppliers could save as much as £300 per year supplier to seek a better deal. Previous the emissions footprint of London’s quickly, efficiently and economically to by switching supplier, but that 56 per experience, such as that of the Big workplaces will need to account for only deliver energy saving measures, and cent of consumers have never switched London Energy Switch, demonstrates 1.6 MtCO2e reducing from around 16.6 guarantee energy savings. energy supplier or did not realise that that this kind of engagement can deliver MtCO2e. This implies around 15,000 this was possible. A fifth of Londoners significant energy savings, but there is a workplaces being retrofitted with energy The scope of RE:FIT has been extended are on pre-payment meters, which tends need to go further by engaging groups efficiency improvements and renewable to offer support to more organisations, to mean higher tariffs and less access to identified by the CMA as being less technologies each year to 2050. bringing a greater focus on solar energy, good deals. There is no incentive for the inclined to switch. and expanding its scope to include the energy market to help customers move As part of Energy for Londoners retrofit of non-building assets, such from the most expensive tariffs. London The Mayor will work with London the Mayor will introduce ambitious as LED street lighting and electric has the lowest levels of switching of all boroughs, community energy groups and programmes to make London’s vehicle charging infrastructure, and regions in the UK for gas and is below the charities to help engage harder-to-reach workplaces more energy efficient the promotion of district heating (see national average for electricity. Recent groups of customers and those who and low carbon. Box 23 for a case study). By 2020 the proposals for a cap may help reduce could soon become fuel poor. programme aims to have reduced costs for some. The risk is that, although The Mayor will support the public sector emissions by nearly 25,000 tCO2e pa, the differential between the highest and Policy 6.1.3 Improve the energy to retrofit their buildings with carbon saved at least 68 GWh of energy and lowest prices narrows, many people will efficiency of London’s workplaces and and energy reduction measures through retrofitted over 400 buildings from a still pay too much. support the transition to low carbon an improved Energy for Londoners range of public sector bodies. heating and power programme building on the current The Mayor will tender for the delivery RE:FIT programme. Launched in spring We will lead by example on the GLA Proposal 6.1.3a Provide direct of an energy supply company. The 2016, this phase of the programme will group’s own estate and activities. The technical support and assistance to Mayor will issue a tender with the aim of run until August 2019. The programme GLA group has reduced emissions from help reduce CO2 emissions and energy procuring a scheme to offer fairer energy will support London’s public-sector its fleet and operations from 189 ktCO2e within the public sector, including bills for Londoners. In light of changing building managers to reduce energy in 2012/13 to 160 ktCO2e in 2015/16 leading by example in the GLA market conditions and uncertainty in demand and carbon emissions, improve and is committed to a 60 per cent group estate national policy, the Mayor aims to start a air quality, and deliver large guaranteed reduction on 1990 levels by 2025. More scheme using an existing supplier. This London’s workplaces are diverse, hosting energy savings for the public sector. can be done to reduce energy use and will allow Londoners to have fairer energy a plethora of organisations from the RE:FIT addresses the lack of technical CO2 emissions, and utilise renewable bills sooner. The option to move to a fully public, private and third sectors which expertise and (increasingly) capacity electricity and low carbon heat sources. licensed supply company will kept under include banks, retailers, manufacturers, within many public-sector organisations The Mayor’s zero carbon target will be review in light of changes in the market government, charities, schools and by providing free-of-charge expert taken into account across City Hall and and clarification of national policy, hospitals. Workplaces which include support to public sector bodies the rest of the GLA group including when as well as the progression of the both commercial and some light (including London boroughs, NHS bodies, making major investment decisions Licence Lite project. industry are responsible for around 42 schools, universities and colleges, and providing funding for building per cent of London’s GHG emissions central government departments and regeneration or retrofit projects. from powering the technology, lighting, cultural and heritage organisations). LONDON ENVIRONMENT STRATEGY 229

BOX 23: CASE STUDY: LYRIC HAMMERSMITH

The Lyric has demonstrated that it is something to help the environment, committed to reducing its impact on such as car journeys, or plastic the environment, and this is enshrined packaging – which resulted in over in their mission and business plan. 100 individual and collective actions. They actively promote this throughout In April 2015, the Lyric opened its new the theatre to visitors, in all their Reuben Foundation Wing which added marketing materials and online. a variety of new studio and workshop They encourage their audiences, spaces, making the Lyric the largest staff, acting companies, creative creative hub in West London. Despite teams and young people to consider this substantial expansion, the Lyric their effects on the environment. achieved a 73 per cent reduction in They have a long standing staff Green relative energy use, thanks to the Team with representatives from every sustainable design which made natural department who run an electricity light a key feature, used air source switch off campaign and issue Lyric- heat pumps and introduced a new branded water bottles to all new staff, green sedum roof which contributes to creative teams and young people. local biodiversity. The Lyric’s building They recycle 100 per cent of their has since been awarded a BREEAM waste, run paperless finance and rating of Excellent, putting the Lyric administrative systems, 100 per cent in the top 10 per cent of sustainable of their public lighting is LED and UK buildings. Recycled and reclaimed their energy comes from renewable materials were used where possible sources. Recently they launched the for fixtures and fittings, with office public ‘#LyricLent’ campaign over 7 desks made from scaffolding boards. weeks encouraging people to give up LONDON ENVIRONMENT STRATEGY 231

Proposal 6.1.3b Supporting reducing business opportunities that will cut Policy 6.1.4 Ensure that new emissions and energy within the down the amount of energy and other developments are zero carbon commercial sector including through resources used, potentially saving BOX 24: LONDON THEATRE Proposal 6.1.4a Through the London improved building management, energy businesses millions of pounds (see Box CONSORTIUM Plan the Mayor will consider policies efficiency and reporting 24 for an example of how this can be to support the delivery of zero done in practice). This could include: The London Theatre Consortium is Commercial buildings are estimated a network of 14 leading producing carbon development to be responsible for 32 per cent of • expanding the Mayor’s RE:FIT theatres in London set up in 2010. London already has ambitious zero London’s carbon emissions. There has Programme to the commercial They recently announced the carbon targets for constructing new been some limited government action sector to help reduce emissions latest results of its collaborative housing development in the capital (Box to reduce emissions from this sector in and energy use environmental sustainability 25). All such developments in London the past. This is a missed opportunity, programme. These are: are currently expected to achieve at least with significant energy bill savings to be • providing guidance on what benefits • six years of collaborative a 35 per cent onsite reduction in GHG made by businesses across the capital, increasing energy efficiency can bring success for London’s major emissions above and beyond national which would contribute to to businesses (for example through producing theatres government’s standards (the 2013 their competitiveness. a series of sector by sector guides) Building Regulations). Where the target • an estimated £383,000 of savings cannot be met onsite, developers are In light of this, the Mayor will deliver • sharing best practice, for example on energy bills able to offset emissions through other a three-year (2017/18 – 2019/20) by encouraging businesses to carbon reduction measures offsite. commercial boiler scrappage scheme measure and disclose emissions • 20 per cent reduction in to incentivise the installation of more from their supply chains, in line with carbon emissions efficient gas and renewable heating existing schemes such as the Carbon • 1,862 tonnes of CO2 avoided systems, such as heat pumps. Installing Disclosure Project and standards an efficient boiler or renewable heating established in government guidance • 71 per cent of London Theatre technology can be a cost-effective on Measuring and Reporting Consortium venues achieving a 4 way to cut CO2 emissions, energy bills, Greenhouse Gas Emissions star Creative Green certification while making London’s air cleaner. The The consortium has worked • for larger commercial landlords in 81 scheme will provide financial support closely with Julie’s Bicycle , which particular the Mayor will work with to businesses to replace working low- supports the creative community networks of businesses to take up efficiency commercial boilers with new to act on climate change and opportunities to improve buildings efficient gas boilers or renewable heating environmental sustainability. generation. as part of refurbishment projects.

The Mayor will also investigate what further technical support can be provided to businesses, in particular SMEs, including how to create new

81 Julie’s Bicycle (n.d.), Homepage. Accessed from: www.juliesbicycle.com LONDON ENVIRONMENT STRATEGY 233

The approach that developers are developers should investigate generating Unabated climate change presents a BOX 25: IMPLEMENTING expected to follow – the energy hierarchy and storing renewable energy onsite, as major environmental and health hazard, LONDON PLAN POLICIES – is set out in the London Plan. This well as using it onsite, to contribute to and decarbonising our energy supply is expects development proposals to London’s security of energy supply. important. At the same time, London is In 2016, planning applications minimise carbon dioxide emissions from currently failing to meet legally binding considered by the Mayor will be construction and future operation of the Developers will be expected to commit air quality standards, and public health is expected to achieve reductions in building as well as its annual and peak to delivering against the energy suffering as a result. Tackling this is the regulated CO2 emission of 36 per energy demand. hierarchy in their energy strategies priority so the energy hierarchy will be cent above Part L requirements and the Mayor will report annually on structured so it also contributes towards of 2013 Building Regulations. This To achieve the Mayor’s zero carbon the estimated emissions saved from improving air quality. is estimated to save over 48,000 development target, the energy hierarchy strategic developments. tonnes CO2 per annum against the wording will be updated to: In particular, while Combined Heat and Part L baseline and deliver over In 2016, new developments reported Power systems (CHP) can have benefits £150m investment in heat network 1. be lean: use less energy and an average carbon reduction of seven in terms of carbon emissions, gas engine infrastructure, £12m in solar PV manage demand during construction per cent beyond Part L of the Building CHP plant usually gives rise to higher panels and additional investment in and operation Regulations from energy efficiency emissions of NOx and/or PM10 emissions other energy technologies to assist measures (the ‘be lean’ element of the than ultra-low NOx gas boilers, even when the transition to zero carbon, most 2. be clean: exploit local energy energy hierarchy). Reducing energy abatement equipment is used. Therefore notably heat pumps. resources (such as secondary demand not only saves energy and in preparing his London Plan, the Mayor heat) and supply energy efficiently carbon emissions, but also reduces will consider whether, in areas which and cleanly energy bills and so the Mayor intends exceed legal air quality limits, the policy to investigate measures to encourage should prevent emissions from energy 3. be green: generate, store and use further carbon savings from the ‘be production plant, including from CHP, renewable energy onsite lean’ element of the hierarchy, including that would exceed those of an ultra- the possibility of introducing an energy low NOx gas boiler. Energy production Developers will be expected to manage efficiency target. plant used in other areas should meet energy demand from construction all relevant emission standards (which as well as the operation of the Alongside this policy for homes, the may require abatement equipment) as development as the emissions from Mayor is intending to introduce a zero considered by the new London Plan, as embedded carbon become a greater carbon standard for non-residential well as not causing unacceptable local part of a development’s carbon footprint. buildings in the London Plan from 2019 impacts on air quality. Developers will also be expected to to ensure that all new major development prioritise local energy sources, where in London contributes to the Mayor’s available, and ensure that air quality is a zero carbon city ambition. key consideration in determining energy supply to the development. Finally, LONDON ENVIRONMENT STRATEGY 235

Offset funds The Mayor’s energy efficiency The energy strategies developers building materials) will form a greater While the Mayor intends to maximise programmes could provide technical commit to must be delivered in practice, part of a development’s total carbon onsite emissions reductions from new support to boroughs to help ensure and any potential performance gap footprint. In order to reduce these development, offsetting funds have a that offsetting funds are being used between design and construction must emissions, accurate measurement role to play where onsite measures are effectively to reduce carbon whilst be minimised. This requires accurate methodologies are needed. A survey not technically feasible or cost effective. encouraging a holistic approach to methods for measuring performance conducted to inform the assessment These funds could raise considerable retrofitting buildings. once the developments are operational of city-wide carbon footprints found no funding to enable energy efficiency as well as good enforcement. However, consistency in the data sources, tools measures to be installed in local The Mayor will publish guidance to LPAs boroughs have limited resources or methodologies used to calculate buildings, and be prioritised to tackle on the allocation and use of offsetting to enforce planning conditions and embodied emissions.84 Ninety per cent local issues including fuel poverty. payments and review the current carbon developers’ interest or involvement of construction industry professionals 82 price to determine the most effective is likely to have ceased. responded to a survey stating that As part of the Mayor’s 2016 zero carbon level to deliver carbon offsetting projects they would benefit from better homes policy developers are able to and the option of pooling funds. To address these challenges the Mayor guidance and support. meet their obligations by supporting will review the potential for applying offsite carbon abatement measures. Proposal 6.1.4b Support the design other more effective methods of As a step towards reducing embodied This can either be by paying into carbon of effective methods to ensure the estimating building energy and carbon carbon emissions, the Mayor will support offset funds collected by the Local energy and carbon performance of performance. The Mayor will also the work of BREEAM and RICS to develop Planning Authority (LPA), or delivered new developments meet their agreed work with boroughs and developers to a new British Standard to estimate whole offsite via a carbon saving project agreed designed standards design more effective arrangements life cycle building emissions. between the LPA and the developer. for monitoring the operational energy There have recently been observed gaps performance of new buildings, and In addition, the Mayor will work through in the designed energy performance The majority of London’s LPAs have provide guidance through supplementary the London Waste and Recycling Board and the operational performance of now set up offset funds and the Mayor documents to the London Plan. to assess how a circular economy new developments, mainly due to is working with boroughs to monitor approach can help contribute to reducing materials and components not meeting progress. If all LPAs were to establish Proposal 6.1.4c Encourage the embodied carbon by, for example, specification and lack of knowledge and offset funds and if the proceeds were reduction of whole lifecycle building re-using materials or for new major skills of those making decisions within used more strategically (for example, emissions (embodied carbon) developments to achieve a specified the construction process.83 part or all of the offset funds were to be BREEAM credit for Responsible As onsite emissions continue to reduce, 85 pooled) then this could be used to help Sourcing of Materials. embodied carbon (those emissions improve the energy efficiency of the associated with the production of existing building stock and help tackle fuel poverty.

84 Mayor of London (2014), Application of PAS 2070: London case study. Accessed from: https://data.london.gov.uk/dataset/application-pas- 82 Most boroughs use £60 per tonne 2070-london-case-study 83 Zero Carbon Hub (2013), Closing the Gap Between Design and As-Built Performance. Accessed from: http://webcache.googleusercontent. 85 BREEAM is a widely used sustainability assessment method for master planning projects, infrastructure and buildings. It addresses several com/search?q=cache:dDSCfVrwoyQJ:www.zerocarbonhub.org/sites/default/files/resources/reports/Closing_the_Gap_Bewteen_Design_ lifecycle stages such as new construction, refurbishment and operation. The Responsible Sourcing of Materials component of the BREEAM and_As-Built_Performance_Interim_Report.pdf+&cd=1&hl=en&ct=clnk&gl=uk assessment recognises and encourages the specification of responsibly sourced materials for key building elements. LONDON ENVIRONMENT STRATEGY 237

Policy 6.1.5 Monitor and report on The results are not a formal London is not alone in wanting to London’s emissions regularly to track measurement of London’s emissions take regional action to tackle climate “London will London’s progress and do not assign responsibility for change. Through the C40, a network emissions but provide an understanding of the world’s megacities committed continue to lead Proposal 6.1.5a Publish the London of London’s wider carbon footprint and to addressing climate change, London Energy and Greenhouse Gas Inventory ensure that decisions on policies for will work with other cities to collaborate global megacities on an annual basis London recognise the potential to export effectively, share knowledge and drive To assess the impacts of actions taken rather than deal with emissions. meaningful, measurable and sustainable in the battle by the Mayor and others undertaken action on climate change. to tackle climate change London’s Proposal 6.1.5b Work with other global against global emissions must be monitored. The city leaders through the C40 to support The Mayor is the European representative London Energy and Greenhouse Gas the implementation of the Paris Climate and Vice Chair of C40 and has an warming by Inventory will be published on an annual Agreement important role in helping to set the ambition, priorities and direction of reducing GHG basis, making data available to the public, London has a track record of leading cities globally. Through hosting global and report London’s GHG emissions and by example. London founded the C40 C40 events and working closely with emissions.” activities to mitigate climate change Cities Climate Leadership Group in other international networks such as the annually through a global web platform. 2005, was the first city to create a ICLEI we will continue to share London’s comprehensive GHG monitoring system, London has a long history of leadership experience and work with other cities to first city to measure GHG emissions in understanding and reporting on its reduce GHG emissions. of waste management using a carbon emissions. With the British Standards based approach with set targets for Institute it produced the UK’s first Working with C40 the Mayor will develop waste activities and is now the first city standard on wider city-level (scope a climate action plan consistent with to develop a comprehensive zero carbon 3) emissions.86 This provided an the goals of the Paris Agreement which scenario modelling tool. assessment of all the emissions from aligns with his commitment for London to be a zero carbon city by 2050. The action London’s production and consumption Despite the challenges London faces plan will set out in more detail some of activities and provided the first city the Mayor is adamant that London will the key barriers and opportunities to case study of its kind internationally. continue to lead global megacities in delivering this goal. As one of the most The Mayor will publish indirect the battle against global warming by advance cities in its approach to climate emission estimates to develop reducing GHG emissions. a trend of scope 3 emissions. planning, London will work with other C40 member cites to develop a plan that can be learnt from and translated, setting the goalposts for action across the globe.

86 BSI (2014), PAS 2070 Specification for the assessment of greenhouse gas emissions of a city. Accessed from: http://shop.bsigroup.com/ Browse-By-Subject/Environmental-Management-and-Sustainability/PAS-2070-2013/ LONDON ENVIRONMENT STRATEGY 239

OBJECTIVE 6.2 DEVELOP CLEAN AND on local energy resources utilising Policy 6.2.1 Delivering more “The Mayor will SMART, INTEGRATED ENERGY SYSTEMS heat pumps that supply communal or decentralised energy in London UTILISING LOCAL AND RENEWABLE district heating (or cooling) through Proposal 6.2.1a Help implement large work to increase ENERGY RESOURCES a network of underground pipes scale decentralised and low carbon connecting it to homes and buildings. In addition to reducing the energy use energy projects, including stimulating delivery of For London to become zero carbon by of buildings in London there is a need demand from the GLA group 2050, the energy system will need to to transform the energy system so decentralised move away from using natural gas to District heating networks and renewable that power and heat for buildings and being fuelled more from municipal waste, energy supply account for approximately transport is generated from clean, low energy in London renewable energy and the heat that half of London’s decentralised energy carbon and renewable sources, such as is wasted from industrial and systems, delivering the equivalent of solar and waste heat. and identify commercial processes. two per cent of total demand. There is the opportunity to increase this type Energy infrastructure will need to be and map the The changing nature of energy supply of energy supply to 15 per cent of transformed so that it is smarter and will mean that the way energy is used, demand by 2030. There are a number of more effective. This will enable supply opportunities to and the infrastructure that supports opportunities for further decentralised and demand of energy to be better supply, will need to become more flexible energy projects including large-scale matched, reduce consumption and create a smart, integrating different types of energy and solar PV installations and heat networks enable people to take advantage of responding to demand at different times utilising technologies such as heat cheaper electricity, sold during low flexible energy of the day. A smart approach is therefore pumps in combination with secondary demand periods such as overnight, required which uses real-time data and heat sources. or high supply periods such as on system.” technologies such as smart meters sunny and windy days. to ensure that the energy system can To facilitate implementation the Mayor operate in a way that will reduce system will provide support to boroughs and the While this is a national issue, in peaks. Combined with the increasing private sector through the Decentralised London the supply of more local, use of energy storage and balancing Energy Enabling Project (DEEP)87 decentralised, low carbon energy . Over electricity, heat and cooling demand can be maximised. Decentralised the next two years, this programme will with the available supply, a smart system energy ranges from small production, help implement large-scale decentralised will deliver the optimum cost savings, such as electricity from solar PV energy projects in London, which the reduce resource consumption and panels, to larger scale systems based market is currently failing to develop. promote environmental benefits. DEEP will provide technical, commercial, financial and other support services The Mayor will work to increase delivery to assist public and private sectors to of decentralised energy in London and develop, procure and bring into operation identify and map the opportunities to these large scale projects. create a smart, flexible energy system.

87 DEEP will provide technical, commercial, financial and other advisory and support services to assist public and private energy suppliers to develop, procure and bring into operation larger-scale DE schemes that deliver significant greenhouse-gas emission reductions at market- competitive prices. It will deliver CO2 reductions of 17,400 tonnes per annum by September 2019 through projects it directly supports, and aims to enable 90 MW of capacity installed by 2023. It will prioritise key locations where the feasibility is most suitable. LONDON ENVIRONMENT STRATEGY 241

The Mayor can potentially have a Implementation of large scale Proposal 6.2.1b Increase the amount more direct role in the delivery of heat decentralised and low carbon energy of solar generation in London including “The Mayor networks, significantly increasing the projects will be undertaken in a through community energy projects rate of their development in London. coordinated way so they also contribute and on GLA group buildings wants to see a The Mayor will therefore consider the towards improving air quality as well as The Mayor wants to see a solar revolution establishment of a District Heating reducing carbon emissions. This will solar revolution in London with more heat and electricity Network Delivery Body for London that include meeting any relevant air quality generated from renewable solar sources. secures funding, and in partnership with standards and emission requirements set in London with The draft Solar Action Plan, the first of its London Boroughs, develops and builds out in the London Plan. kind for London, sets out how the Mayor district heating networks. For such a more heat will seize the opportunity for solar energy model to work it is likely that central in the capital and increase deployment in government will need to create a level BOX 26: LICENCE LITE and electricity the coming years. playing field for the treatment of district The Licence Lite project will heating networks compared to other generated from deliver the Mayoral manifesto By 2030, the Mayor’s programmes will statutory utilities regarding access rights commitment to ‘buy clean energy lead to an extra 100 megawatts (MW) and business rates. renewable solar generated across the city, using of installed solar energy generation in London. That will more than double the The Mayor wants to stimulate demand it to power GLA and TfL facilities’. sources.” city’s current solar energy generation for further decentralised energy supply The project will acquire an Ofgem capacity (95 MW). The Mayor thinks in London. This will include developing junior electricity supply licence to London can, and should, go further than affordably-priced markets for locally buy locally generated low carbon this. To meet the zero carbon target, generated electricity. Licence Lite, will electricity at a higher price than London will require around ten times look to purchase electricity from low they would otherwise receive more solar energy generation to be and zero carbon generators in London, from the wholesale market and installed – two gigawatts (GW) by 2050. under a power purchase agreement, sell to GLA group facilities. Licence This can’t be done through the Mayor’s and sell it to GLA group members and Lite aims to be operational by leadership and programmes alone. It will public sector organisations to use in autumn 2017. need strong and supportive policy from their buildings (Box 26). The Mayor will national government and the support evaluate the success of an initial Licence of local government, the private sector, Lite trial with TfL and look to develop charities and individuals. a business case for signing up other GLA group members and public sector organisations to purchase local low carbon power. LONDON ENVIRONMENT STRATEGY 243

Proposal 6.2.1b Increase the amount addition to continuing to encourage solar of solar generation in London including energy through the planning system, the BOX 27: THE MAYOR’S DRAFT SOLAR through community energy projects Mayor will also encourage Londoners ACTION PLAN (CONTINUED) and on GLA group buildings to retrofit solar on their homes. This will be achieved by producing an interactive maximise installation on the GLA and the introduction of a successor The Mayor wants to see a solar revolution map for Londoners with guidance and group’s buildings and land to the RE:NEW programme in London with more heat and electricity information on installing solar, and generated from renewable solar sources. • support projects that promote piloting a new solar reverse auction 2. Encourage solar energy The draft Solar Action Plan, the first of its energy storage scheme to reduce installation costs for installations through the kind for London, sets out how the Mayor Londoners. To support communities, the planning system will seize the opportunity for solar energy Mayor will also introduce a community in the capital and increase deployment in • ensure that new developments 4. Help Londoners to make informed energy support scheme to help get solar the coming years. include solar, where feasible, and decisions about investing in solar projects up and running. work with boroughs to ensure energy technologies By 2030, the Mayor’s programmes will planning policies don’t necessarily The Mayor would welcome feedback on • produce an interactive map for lead to an extra 100 megawatts (MW) restrict solar installation on the draft Solar Action plan during the Londoners to identify solar energy of installed solar energy generation in existing properties consultation of this strategy. generation potential and promote London. That will more than double the it through Mayoral programmes city’s current solar energy generation 3. Help Londoners to retrofit solar energy technologies on their capacity (95 MW). The Mayor thinks BOX 27: THE MAYOR’S DRAFT • provide clear guidance and homes and workplaces through London can, and should, go further than SOLAR ACTION PLAN information on installing solar this. To meet the zero carbon target, the Mayor’s programmes and energy technologies funding London will require around ten times The actions in this draft plan will Further government action: more solar energy generation to be put London on track to realising • pilot a new ‘solar reverse auction’ installed – two gigawatts (GW) by 2050. the potential of solar energy. In scheme to reduce installation 5. Call on government to set a This can’t be done through the Mayor’s addition, costs for Londoners national policy framework leadership and programmes alone. It will it will maximise the contribution of to help London realise its need strong and supportive policy from • develop a grants scheme to help solar to the Mayor’s zero carbon solar energy potential national government and the support city ambition. solar energy projects get off the of local government, the private sector, ground • call on government to ensure charities and individuals. Mayoral actions: national policy is introduced to • encourage public sector support higher levels of solar 1. Lead by example by maximising organisations and providers of Box 27 summarises the Mayor’s energy deployment in London solar energy technologies on social housing to retrofit solar proposed approach and headline as part of a package of national GLA group buildings and land energy technologies on buildings. actions to increase the amount of government policy measures that This will include promoting solar generation installed in London. • map the full potential for solar enable London to meet its ambitious technical help programmes like These include leading by example by energy generation on the zero carbon target by 2050 the Mayor’s RE:FIT programme maximising solar energy technologies GLA group estate in 2018 and on GLA group buildings and land. In LONDON ENVIRONMENT STRATEGY 245

Policy 6.2.2 Planning for London’s new low-temperature waste heat and the smart energy infrastructure implications of supplying heat to connected building heating systems. Proposal 6.2.2a Encourage the identification and planning of Heat networks provide infrastructure decentralised energy in priority areas for decentralised energy and are one of In order to maximise the supply of more the main opportunities for the supply of local, decentralised, low carbon energy low carbon heat in London. At present, in London, it is important to identify the most heat networks are built as part of most appropriate areas, energy systems new developments. However, to meet the and technologies. To understand the Mayor’s zero carbon ambitions, it is likely suitability and location of decentralised that some of London’s existing housing energy opportunities, the London Heat will also need to be supplied by heat Map will be maintained to include data networks. To enable this, the Mayor will for decentralised energy development support the identification of areas where – including secondary heat sources. existing buildings could be retrofitted for The Mayor will continue to support all connection to local heat networks, with London boroughs to produce Energy an aim of developing the business case Master Plans and use them to identify for a pilot project that retrofits heating areas where the most appropriate energy systems in a number of existing buildings systems should be considered. so that they can be connected to a local heat network. The boroughs can play an important role in identifying these suitable areas The Mayor will encourage industry for decentralised, low carbon energy to ensure that heat networks that and support the development and are developed in London are of the installation, including through new highest standards so they operate developments. Once suitable sites have efficiently, effectively and reliably once been identified, the Mayor will, through in operation. As heating systems and DEEP, work with stakeholders to support their associated networks are currently the planning of decentralised energy largely unregulated it is critical that by providing support to carry out heat industry standards (or equivalents) are developed, such as the Heat Trust mapping and energy masterplans. This Credit: London Borough of Islington will include the potential to recover standard for customer service and the LONDON ENVIRONMENT STRATEGY 247

heat networks Code of Practice for the National government will also need to energy system. Phase 2 of Islington data analytics and predictive control design, specification and operation of decide on whether the UK moves to a Council‘s Bunhill Heat and Power Heat techniques to create energy services heat networks are of a high and relevant hydrogen economy, which would see gas Network is the London demonstrator. It is that Londoners want. Scaled up standard. The Mayor will work with networks adapt the system to transport integrating waste heat from the Tube into across London, a sustainable energy all stakeholders to update London’s hydrogen for heating, cooking, homes the network and using smart controls to management system has the potential guidance on design and specifications and transportation in a similar way to operate the energy centre. to reduce energy consumption by up for heat networks and consumer the supply of natural gas today. The to 20 per cent, cut energy bills and standards in light of latest standards and Mayor will work with national government The Mayor is also supporting, Sharing emissions. The Mayor will deliver a feedback from Londoners. to identify research opportunities Cities, a €25m smart city demonstrator comprehensive quantitative evaluation of to pilot zero carbon hydrogen heat programme in partnership with the performance of the measures across Storage of energy will also be important projects working with the London Greenwich, Milan, Lisbon, Bordeaux, the Greenwich demonstrator and share to balance supply and demand at the Hydrogen Partnership. Burgas and Warsaw. The programme this learning across London, nationally building, district and national levels. aims to use data and digital approaches and internationally. Battery storage is likely to become Proposal 6.2.2b Undertake to ‘connect up’ existing and new building, increasingly important, and thermal demonstration project and trials to transport and energy infrastructure, Proposal 6.2.2c Investigate the storage could enable surplus electricity improve London’s energy systems to reduce energy demand, bills and potential for further smart, flexible generation from renewables (e.g. solar emissions, and achieve integrated city energy system demonstrators and To ensure that London is at the forefront PV in the summer), to be converted infrastructures that meet citizens’ needs. pilots where Londoners can help of developing smart and integrated to and stored as heat for later use in manage demand energy systems, the Mayor will support district heating. London’s potential for Through Sharing Cities the Mayor demonstrations and trials of advanced The Mayor has assessed the impact on inter-seasonal thermal storage has yet will work with Greenwich to apply approaches to optimise London’s the national electricity system resulting to be explored, but if feasible, excess retrofitting solutions to residential five energy systems, sharing findings across from the electrification of heating to summertime energy could be captured non-residential properties, including London, nationally and internationally. achieve zero carbon. It considered the for wintertime heating. integrating low carbon energy supply, system reinforcement investment and improvements to the physical fabric For example, the Mayor has supported Londoner’s energy bills for a high DE City subsurface temperatures are known of buildings to make them more energy CELSIUS, an EU Smart Cities scenario compared with a low scenario. to have increased due to the urban efficient, and the installation of smart Demonstration Project with five It concluded that the former would cost heat island (UHI) effect (see Chapter 8: digital heating and electricity controls European partner cities: Gothenburg the national system £20bn less, and Adapting to Climate Change) causing in individual apartments. The Mayor will (lead partner), London and Islington Londoner’s bills would be 40 per increased aquifer temperatures. The also support the implementation of a Council, Cologne, Genoa and Rotterdam, cent lower. Mayor will investigate the potential sustainable energy management system which runs until December 2017. It for London’s geology to provide that will integrate city infrastructures, investigates the role of waste heat in thermal storage and heat source as optimise energy supply, and use district heating networks and the role a consequence of the UHI effect, in of district heat networks in the wider conjunction with future low temperature heat networks. LONDON ENVIRONMENT STRATEGY 249

London therefore plays an important • innovations that flexibly match OBJECTIVE 6.3 A ZERO EMISSION role within the national energy system changing energy supply and demand TRANSPORT NETWORK BY 2050 and the Mayor will work with central profiles of the future The Mayor’s ambition is to have a government, the Grid Operator and other zero emission transport network by key stakeholders (including Ofgem, • incorporating storage or advanced 2050. This will be achieved through National Grid and Distribution Network management and optimisation of an integrated approach to reducing Operator Companies) to investigate the multiple energy supply to boost carbon emissions and air pollutants from approach to the planning of city energy use and efficiency transport. The policies and proposals to systems that will lead to smart, flexible reduce London’s carbon emissions from city systems operating as part of the • removing barriers to innovative SMEs transport have therefore been combined national system and allow Londoners to accessing energy markets, offering with policies and proposals under the air participate in the demand side response customers better energy services and quality chapter of this strategy. Please market. This includes: creating new value for London’s tech businesses see Chapter 4 for full air quality policies and proposals. • demand side response initiatives and the impact of electrification Proposal 6.2.2d The Mayor will oppose upon the grid fracking in London The Mayor has been clear that he • the potential role of a zero carbon policies and proposals to achieve his opposes fracking in London and through Q gas supply for London and the role contribution to this? What more can the new London Plan he will consider CONSULTATION QUESTIONS: CLIMATE of district heating networks in an central government and others do to policies to ensure that fracking is CHANGE MITIGATION AND ENERGY integrated energy system achieve this? prevented in London. If any fracking 1. Do you agree that the policies and applications were made in London in 3. Which policies or programmes would • and, most importantly, the flexibility proposals outlined will meet the the Green Belt or on Metropolitan Open most motivate businesses to reduce potential of London’s demand side Mayor’s ambition to make London Land the current London Plan contains energy use and carbon emissions? response could offer a zero carbon city by 2050? Is strong policies for their protection, the proposed approach and pace however the Mayor will look to 4. Please provide any further The Mayor will investigate future realistic and achievable? demonstrators and pilots including: strengthen this policy further. comments on the policies and programmes mentioned in this 2. To achieve the Mayor’s zero carbon chapter, including those in the draft ambition we estimate (between now solar action plan and draft fuel and 2050), up to 100,000 homes will poverty action plan that accompany need to be retrofitted every year this strategy. with energy efficiency measures. Do you agree with the Mayor’s london.gov.uk/environment-strategy